NEW: Get 10,000 Nectar points (6,250 Avios) with the free Sainsbury’s Nectar Credit Card

UPDATE – DECEMBER 2023:  This article is now out of date, but don’t worry.  We produce a monthly directory of the top UK travel credit card offers – please click HERE or use the ‘Credit Cards’ menu above.  Thank you.

SPECIAL OFFER: Until 9th January 2024, you will receive 30,000 Membership Rewards points (convertible to 30,000 Avios) with American Express Preferred Rewards Gold. You receive 25,000 points if you spend £3,000 in three months and a further 5,000 points if you hold the card for 15 months. You can apply here.

SPECIAL OFFER: Until 9th January 2024, you will receive a huge 100,000 Membership Rewards points (convertible to 100,000 Avios) with The Platinum Card. You receive 75,000 points if you spend £10,000 in six months and a further 25,000 points if you hold the card for 15 months. You can apply here.

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Sainsbury’s Bank has, until 18th January, boosted the bonus on the Sainsbury’s Nectar Credit Card.

This free Mastercard usually has a sign-up bonus of 8,000 Nectar points, which converts to 5,000 Avios.

For the next couple of weeks, this is increased to 10,000 Nectar points. This is worth 6,250 Avios.

It certainly isn’t a great credit card for day to day spending, as I will explain, but arguably 6,250 Avios as a sign-up bonus on a free credit card is worth thinking about.

About the Sainsbury’s Nectar Credit Card

The Sainsbury’s Nectar Credit Card is issued by Sainsbury’s Bank, a wholly owned subsidiary of the supermarket chain.

The card is issued as a Mastercard.

The representative APR is 22.9% variable.

Sainsbury’s Bank issues a number of credit cards with different features. All have the same earning rate per £1 spent. This version has the most generous Nectar sign-up bonus.

You can ONLY apply for the 10,000 points offer via this link and not via the standard Sainsbury’s Bank website.

What is the Sainsbury’s Nectar Credit Card sign-up bonus?

Until 18th January, you will receive 10,000 Nectar points when you spend £400 at Sainsbury’s, Tu Clothing or Argos within your first two months.

This is worth 6,250 Avios if you convert the Nectar points.

The usual bonus is 8,000 Nectar points, worth 5,000 Avios, and I would expect it to return to this level after 18th January.

Details of how to convert Nectar points to Avios are on ba.com here.

What are the conditions of applying?

There is no stated minimum income requirement.

You must have a Nectar card to apply. Sainsbury’s would prefer you to have held one for six months before applying for the credit card, but this is not compulsory.

Any other benefits?

All new cardholders receive two financial benefits:

• 0% interest on balance transfers for 6 months

• 0% interest on purchases for 6 months

Note that Sainsbury’s credit cards now work with Apple Pay, which was not the case a year ago, and with Google Pay.

What is the Sainsbury’s Nectar Credit Card annual fee?

There is no annual fee.

What do I earn per £1 spent on the card?

The earning rate on the card is 1 Nectar point per £5 for general spending and 1 point per £2 for spending in Sainsbury’s, Tu Clothing and Argos. This is exceptionally bad.

Points are earned ‘per transaction’. This means that a £4.99 purchase outside of Sainsbury’s will earn nothing. A £9.99 transaction would only earn one Nectar point. Given that the return is so poor in the first place, this is astonishing penny-pinching.

What is a Nectar point worth?

In virtually all circumstances, a Nectar point is worth 0.5p.

Here is our HfP guide on how to spend Nectar points.

1 Nectar point per £5 charged to your card is equivalent to a 0.1% rebate on your spend.

In reality, it is worse than this because your spending is rounded down to the nearest £5 per transaction before points are awarded.

With 1 Nectar point worth 0.625 Avios, you would earn 0.125 Avios per £1 spent outside Sainsbury’s. Inside Sainsbury’s and Argos you would earn 0.312 Avios per £1.

How does a 0.125 Avios per £1 compare to other Mastercard or Visa credit cards?

It’s a joke, to be honest.

Let’s assume that you get the free Barclaycard Avios credit card. This earns 1 Avios per £1 spent. You can transfer these to Nectar and get 1.33 Nectar points per £1, worth 0.66p.

Astonishingly, the free Barclaycard Avios credit card earns you 6.6x the rewards of the Sainsbury’s Nectar Credit Card. This is before you factor in the annual Barclaycard / British Airways upgrade voucher too!

Is the Sainsbury’s Nectar Credit Card worth getting purely for the sign-up bonus?

Yes, potentially. It is down to how desperate you are for 6,250 Avios, your ability to hit the qualifying spend and your willingness to add another card to your credit file.

The Sainsbury’s Nectar Credit Card sign-up bonus is worth considering. 10,000 Nectar points is worth 6,250 Avios.

You need to spend £400 in Sainsbury’s, Argos or Tu Clothing within two months to trigger the bonus. Before you apply, be certain that you can manage this.

It is likely that gift card purchases, for other companies, bought in Sainsbury’s would trigger the bonus.

Conclusion

The Sainsbury’s Nectar Credit Card has a good sign-up bonus. The bonus of 10,000 Nectar points will convert into 6,250 Avios.

The on-going earnings rate of 1 Nectar point per £5 spent is weak, unfortunately, and this card is not a great ‘keeper’ for daily spending. Even the ‘improved’ rate of 1 point per £2 spent in Sainsbury’s, Argos or Tu Clothing is a bit of a joke.

The application form for the Sainsbury’s Nectar Credit Card 10,000 points offer can be found here. The special bonus offer ends on 18th January.

PS. If you don’t have the Nectar American Express credit card, take a look at our review here.

Disclaimer: Head for Points is a journalistic website. Nothing here should be construed as financial advice, and it is your own responsibility to ensure that any product is right for your circumstances. Recommendations are based primarily on the ability to earn miles and points. The site discusses products offered by lenders but is not a lender itself. Robert Burgess, trading as Head for Points, is regulated and authorised by the Financial Conduct Authority to act as an independent credit broker.

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Want to earn more points from credit cards? – December 2023 update

If you are looking to apply for a new credit card, here are our top recommendations based on the current sign-up bonuses.

In February 2022, Barclaycard launched two exciting new Barclaycard Avios Mastercard cards with a bonus of up to 25,000 Avios. You can apply here.

You qualify for the bonus on these cards even if you have a British Airways American Express card:

You can see our full directory of all UK cards which earn airline or hotel points here. Here are the best of the other deals currently available.

SPECIAL OFFER: Until 9th January 2024, you will receive 30,000 Membership Rewards points (convertible to 30,000 Avios) with American Express Preferred Rewards Gold. You receive 25,000 points if you spend £3,000 in three months and a further 5,000 points if you hold the card for 15 months. You can apply here.

SPECIAL OFFER: Until 9th January 2024, you will receive a huge 100,000 Membership Rewards points (convertible to 100,000 Avios) with The Platinum Card. You receive 75,000 points if you spend £10,000 in six months and a further 25,000 points if you hold the card for 15 months. You can apply here.

Earning miles and points from small business cards

If you are a sole trader or run a small company, you may also want to check out these offers:

For a non-American Express option, we also recommend the Barclaycard Select Cashback card for sole traders and small businesses. It is FREE and you receive 1% cashback on your spending.